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The Bank of England will deliver its strongest signal yet that interest rates
are likely to rise by early next year when it publishes its latest outlook
on the economy this week.

The central bank is expected to endorse market forecasts for the first rate
increase in Wednesday’s quarterly Inflation Report. In the past
three months, traders have brought forward their prediction from May to
February.

Economists think that Mark Carney, the governor, will also leave the door open
to a possible increase before the end of the year.

The Bank’s Inflation Report is its most closely followed
publication and